Make / Model Search
News - General News - FuelsRunning costs down, for nowPump prices: Rising fuel costs could skittle reduced car running costs. Motor club survey shows car running costs down, just as fuel prices go up again2 Jul 2009 REDUCED car insurance costs and two successive quarters of lower fuel prices have combined to decrease the annual running costs of new vehicles in Australia by an average of seven per cent in the past 12 months, the latest car running costs survey by state-based motoring clubs has found. However, the good news for new-car buyers comes just as higher crude oil prices and the elimination of fuel subsidies in some states from July 1 conspire to increase the running costs for many Australian motorists. The Australian Competition and Consumer Commission (ACCC) has responded to a demand by the NRMA for it to use its powers to investigate recent fuel price increases by saying it will examine the issue. NRMA president Wendy Machin said that last Friday (June 26), when the unleaded petrol price in Sydney was three cents a litre above the average reasonable benchmark of $1.33, some fuel retailers in NSW were charging up to eight cents more. “I am asking the ACCC to investigate the high unleaded prices that occurred in Sydney last Friday, and the rising petrol prices that have occurred in Sydney over the past six weeks,” Ms Machin wrote to ACCC petrol commissioner Joe Dimasi.  From top: Hyundai Getz, i30 and Holden Epica.Mr Dimasi responded by saying: “If consumers think there is something in particular that we should look at, then we owe it to them to look at the issue and see if there is anything untoward there. Let me examine the issue before I publicly respond.” Queensland and northern NSW motorists are this week paying up to 10 cents a litre more for fuel than they were last week, following the elimination of an 8.35-cent fuel subsidy in that state – and a similar subsidy for the northern NSW region to encourage them not to cross the border to buy fuel – from July 1. Queensland premier Anna Bligh said in the lead-up to the fuel subsidy’s axing that Queensland fuel retailers that hiked their prices excessively post-July 1 would be “named and shamed”. The latest weekly report by the Australian Institute of Petroleum (AIP) shows the national average unleaded petrol price increased by a further 1.4 cents a litre in the past week to $1.257, with prices rising in all states except Tasmania. The average price in metropolitan areas rose 1.7 cents to $1.262, while the average regional price rose 0.7 cents to $1.247. According to the AIP, the national average pump price has increased some 10 cents over the past seven consecutive weeks, but remains well below the peak of nearly $1.50 a litre, set nine months ago. An AAP quotes Commonwealth Securities economist Savanth Sebastian as blaming last week’s eight-month high in petrol prices on rising global oil prices, but said a strengthening Australian dollar and moderating oil prices should combine to stabilise petrol prices at around current levels. “Importantly over the last week the global oil price has moderated, while the Aussie has managed to hold above 80 US cents,” he told AAP. “The good news is that with oil prices holding around current levels, pump prices should stabilise around $1.25 to $1.27 a litre.” Mr Sebastian said the stronger Australian dollar – which the Commonwealth Bank is forecasting should end the year at 84 US cents, rising to 89 US cents by June 2010 – had insulated motorists from the rising global oil price to some degree, saving them around 25 cents a litre since March. However, consistently higher fuel prices from this week have already made redundant the latest car running costs surveys revealed simultaneously today by the RACQ in Queensland, the RACV in Victoria and the RAA in South Australia. The NRMA is yet to reveal its independent running costs survey for NSW, with the results of the other three major state motoring clubs varying slightly because of state-based differences in new-vehicle insurance costs and stamp duty, plus varying service labour costs. RACQ executive manager for vehicle technologies Steve Spalding told AAP that reduced car running costs due to lower fuel prices and interest rates over the past 12 months would be “seriously eroded” by “several hundreds of dollars” over the coming year because of Queensland budget measures including fuel tax, registration and insurance costs. “Depending on whether you own a small econo-hatch or large four-wheel drive, expect higher fuel taxes and big registration and compulsory third party insurance increases to typically add between $145 to $285 in costs,” said Mr Spalding. Based on RAA of SA results, of the record 75 vehicles sampled by all three motoring clubs, Hyundai’s Getz S was the most affordable car to own and run in South Australia for the third consecutive year. While the Getz S cost an average of $122.18 a week to own and run (down from $122.67 the previous year), Toyota’s LandCruiser was again named the most expensive at $371.10 a week – down from $398.64 in 2008. The results were based on a five-year ownership period for private motorists who travelled 15,000km, with data collected in the period leading up to May 2009. Apart from the Getz, which was named the most affordable light-car, other category winners included the Hyundai i30 ($154.76 – best small-car), Holden Epica ($197.68 – best mid-sizer) and Ford Falcon XT E-Gas sedan ($221.73 – best large-car), which was boosted by the government’s $2000 LPG rebate. Other class champions included the Kia Carnival ($228.49 – best people-mover), Hyundai Tucson City ($190.05 – best compact SUV), Toyota Kluger ($235.34 – best medium SUV), Nissan Patrol DX ($291.59 – best large SUV), Ford Falcon XT E-Gas ute ($182.11 – best 4x2 ute) and Ford Ranger XL ($245.37 – best 4x4 ute). “It’s significant to note that the diesel i30 was found to be $5.61 more expensive per week to run than the petrol equivalent,” said RAA technical manager Mark Borlace. “With interest rates down we also discovered that on a Toyota Corolla, interest had dropped over $10 a week over last year’s survey, combined with fuel costs dropping by 1.49 cents per kilometre. “In most cases, the survey found that last year’s winners including the Hyundai Getz, Hyundai i30 (petrol rather than diesel), Kia Carnival, Patrol diesel and LPG Falcon Ute all retained their standing,” said Mr Borlace. The survey found that BMW’s 320i was the most expensive for servicing and spare parts, with $9228.86 tallied up over five years compared with $2926.09 for a petrol Commodore. 2009 RAA Vehicle Operating Costs Survey – top performers:
Read more:LPG interest spikesGovernment petrol price scheme defeated |
Click to shareGeneral News articlesResearch General News Motor industry news GoAutoNews is Australia’s number one automotive industry journal covering the latest news, future and new model releases, market trends, industry personnel movements, and international events. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Connect with us
Facebook Twitter Instagram